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Susan States,

Clearly, Ishmael's circumcision did not carry the significance of Abraham's circumcision. What counted was the circumcision of the heart.

So how did Abraham know the condition of a child’s heart at 8 days old? It is ludicrous to think that every child born to Abraham was in no way a member of the Abrahmaic covenant, prior to faith. If this is what we were to believe then God very simply would have told Abraham to circumcise only the ones that came to faith (latter in life), so they could be in the Abrahamic covenant! Indeed, that was not the command of Scripture (Gen 17). Indeed, the teaching of God’s Word directly contradicts what you would have us to believe. Paul says of his wicked kinsmen:

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The Scripture States,

Rom 9:1-5 I AM telling the truth in Christ, I am not lying, my conscience bearing me witness in the Holy Spirit, that I have great sorrow and unceasing grief in my heart. For I could wish that I myself were accursed, separated from Christ for the sake of my brethren, my kinsmen according to the flesh (lost Israelites), who are Israelite <span style="background-color:#FFFF00">to whom belongs </span>the adoption as sons and the glory and <span style="background-color:#FFFF00">the covenants</span> and the giving of the Law and the temple service and the promises, whose are the fathers, and from whom is the Christ according to the flesh, who is over all, God blessed forever. Amen.

See below for what the plural--<span style="background-color:#FFFF00">the covenants</span> means.

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Susan States,

…. These Galatian verses also show that Ishmael is in a different covenant than Isaac. God shows grace only to His elect, so how could an unbeliever even be in that Covenant? Do you believe that Ishmael was in the Covenant of Grace?...
Paul explains Gen 17 to us. Though others use other brands of hermeneutics that embrace TWO or more covenants, there is only one covenant of grace, in essence identical in both dispensations, but revealed more and more fully in course of time (Gal 3:17-18). These two women, says Paul, are (that is, represent) two covenants (that is two distinct affirmations of God’s one and only covenant of grace, as revealed below). These two, but one were: the covenant with Abraham (Gal 3:8, 16-18) and the covenant of Sinai (Gal. 3:19, 24).

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The Scripture States,

Gal 3:8, 17-18 And the Scripture, foreseeing that God would justify the Gentiles by faith, preached the gospel beforehand to Abraham (one Gospel), saying, “ALL THE NATIONS SHALL BE BLESSED IN YOU.” …What I am saying is this: the Law, which came four hundred and thirty years later, <span style="background-color:#FFFF00">does not invalidate</span> a covenant previously ratified by God, so as to nullify the promise. For if the inheritance is based on law, it is no longer based on a promise; but God has granted it to Abraham by means of a promise.
<span style="background-color:#FFFF00">The Sinai Covenant did not invalidate Abrahamic Covenant</span>. See my answer to Gerry for more.

Reformed and Always Reforming,